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By

June 23, 2012

The research reports excerpted here were issued recently by investment and research firms. Many may be obtained through Thomson Reuters at www.thomson.com/financial or 800-638-8241. Some are available in the company-research area of WSJ.com, or through Factiva.com. Some of the reports' issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.

First Cash Financial Servicesfcfs -1.0212765957446808%First Cash Financial Services Inc.U.S.: NasdaqUSD46.52
-0.48-1.0212765957446808%
/Date(1427835600037-0500)/
Volume (Delayed 15m)
:
170514AFTER HOURSUSD46.52
%
Volume (Delayed 15m)
:
3029
P/E Ratio
15.663299663299663Market Cap
1330946037.29248
Dividend Yield
N/ARev. per Employee
90237.6More quote details and news »fcfsinYour ValueYour ChangeShort position
• FCFS-Nasdaq Market Outperform • Price $37.82 on June 19 by JMP Securities This morning, the pawn lender announced the acquisition of Mister Money, a 24-store pawn provider in the U.S., for $25.5 million. This acquisition increases the company's base of large-format U.S. stores by 17%, expanding…into an additional four states (for a total of 12 states). The company also announced that it expanded its bank credit facility from $50 million to $100 million. We are raising our 2012 EPS estimate from $2.75 to $2.76 and our 2013 estimate from $3.25 to $3.33. Our 12-month price target remains $45.

Layne Christensenlayn 5.2521008403361344%Layne Christensen Co.U.S.: NasdaqUSD5.01
0.255.2521008403361344%
/Date(1427835600145-0500)/
Volume (Delayed 15m)
:
316835AFTER HOURSUSD5.01
%
Volume (Delayed 15m)
:
7576
P/E Ratio
N/AMarket Cap
93962403.4286499
Dividend Yield
N/ARev. per Employee
197285More quote details and news »layninYour ValueYour ChangeShort position
• LAYN-Nasdaq Buy • Price $19.50 on June 18 by Ladenburg Thalmann Layne is the largest driller of water wells in North America, and is one of the top 10 global water and wastewater engineering and construction firms. Due to recent weakness in U.S. construction markets and record gold, silver, and copper prices, Layne's fortunes have been largely tied to its mineral-exploration business, the third-largest global provider of exploratory and definitional drilling services to the mining industry.

Layne is a quintessential rebuilding story, and has all the characteristics of a stock that deserves to be unloved—a legacy water business suffering losses, a highly cyclical mineral-exploration business producing what are likely peak earnings, the attempted sale of noncore natural-gas properties in a record-low gas market, a legal investigation that has claimed senior executives and will likely result in a fine of $8 million to $18 million, and municipal-budget imbalances that threaten to disrupt the effort to turn around the water business.…Yet this is all "baked in," and a defensive balance sheet shields downside risk. Price target: $25.

Philip Morris Internationalpm -1.990632318501171%Philip Morris International Inc.U.S.: NYSEUSD75.33
-1.53-1.990632318501171%
/Date(1427835719809-0500)/
Volume (Delayed 15m)
:
7009802AFTER HOURSUSD75.33
%
Volume (Delayed 15m)
:
478353
P/E Ratio
15.82563025210084Market Cap
118894736820.618
Dividend Yield
5.309969467675561% Rev. per Employee
359418More quote details and news »pminYour ValueYour ChangeShort position
• PM-NYSE Outperform • Price $87.73 on June 18 by Wells Fargo Securities PM is hosting an investor day in Lausanne, Switzerland, on June 21 and 22, and we believe this event could be a positive catalyst for the stock. We expect management to highlight in greater detail PM's robust growth opportunities throughout each of its regions, especially in Asia, where we continue to expect PM's profits to double with Indonesia's profit quadrupling by 2020, based on our in-depth, proprietary analysis. Furthermore, given the strengthening U.S. dollar, we expect management to update its currency expectations. As such, we are reducing our 2012 EPS estimate by nine cents, to $5.26, and our 2013 estimate by 15 cents, to $5.85. We continue to believe that PM is best in class, and it remains our top stock pick. We reiterate our Outperform rating and the midpoint of our valuation range of $96.

We expect PM to announce a quarterly dividend increase of at least 9%, to 84 cents, during mid-September.

We don't believe there has been a significant change in trends since DSW raised fiscal 2012 sales/earnings guidance on May 22. Rather, we attribute the 2Q12 shortfall largely to differences in internal and external expectations. We note that management doesn't generally provide quarterly guidance, but has consistently telegraphed that 2Q12 would be the toughest quarter of FY12. Street (and our own) expectations apparently didn't sufficiently reflect this.

We're paring our 12-month price target in the footwear retailer from $68 to $65, or 17.5 times our new 2013 EPS estimate of $3.70, down from a prior $3.75.

Body Central
• BODY-Nasdaq Market Perform • Price $8.22 on June 19 by Avondale Partners We reduce our price target to $10 from $17. The big EPS cuts and thus-far lack of clarity on what exactly has gone wrong at the apparel retailer have pared guidance credibility to minimal levels. We do expect year-ending cash at $61 million, or $3.73/share. We don't believe the business model is broken, considering 13 consecutive quarters of positive comps while adding 83 new stores across a widening geography.